It is common knowledge that a homeowner incurs expenses when they decide to put their condo or house up for sale. The same holds true for buyers of residential properties. In addition to finding the right property and paying for inspections, they will also have Florida real estate closing costs to consider.
How Much are Costs and Expenses?
Closing costs are fees by lenders and other parties involved in the sale and purchase of a home. There is not a set amount that you can expect to pay as the buyer of a real estate property. Exact costs and expenses will depend on the type of transaction. This could relate to the purchase price or if you are making a cash transaction.
Buyer Fees Included in Closing Costs
As the buyer, fees included in your closing costs can be:
- Credit report
- Home inspections
- HOA transfer
- Loan origination
- Property tax
- Homeowner’s insurance
Generally, Florida real estate closing costs are a combination of fees charged by the mortgage company and title insurance company. Also keep in mind that everything listed above might not be included in your closing costs. The price of your new property, financing option and the condition of the home can increase or decrease what you pay.
Calculating Real Estate Closing Costs in Florida
There are other factors to consider when calculating how much you need to bring to the table. If your down payment is less than 20%, you will need to get private mortgage insurance. Calculations should also include the escrow fee/settlement fee.
On average, you could pay 2-5% of the purchase price as the buyer. Knowing the price of your new home can help with estimating how much you will need at the closing. Those selling their home might pay up to 6% in closing costs. This covers the title search, lien search and title insurance.
Closing a real estate transaction goes beyond finding the perfect property. Not educating yourself on the details surrounding your purchase could delay or cancel the sale. You don’t want unexpected surprises on the day you expect to get keys to your new home. Trained real estate professionals can help with a smooth process.